Reliance on financial assistance grows
The number of people relying on financial assistance continues to grow, and the categories of “able-bodied unemployed and earnings-low persons” have more than doubled over the past two to four years.
However, seniors and the disabled continue to lead, according to the Community, Culture and Sports Minister, Patricia Gordon-Pamplin.
The remarks came as Members of Parliament debated $5.6 million in supplementary grants for financial assistance for the 2014-15 fiscal year. The extra funds were approved by MPs shortly before midnight during Monday’s final session of Parliamentary Budget debate.
There about 860 seniors on financial assistance, an increase of roughly 75 clients over 2014-15 — and about 780 disabled clients, an increase of 135. The department’s fraud hotline took more than 70 calls over the 2014-15 fiscal year, with 60 cases of confirmed fraud and nine still under investigation. Repayments were taken from 53 clients, netting about $88,000.
The Department of Financial Assistance has had to resort to a variety of new tactics to head off rising demands, Ms Gordon-Pamplin added.
“Continued payouts of over $12 million in the second quarter of this fiscal year are entirely unsustainable,” she said.
“To be able to accommodate new client applications, and to remain within our budgetary vote, we have tabled legislation to further restrict duration of benefits for able-bodied unemployed under the age of 65.”
A public-private partnership with Digicel was launched on February 1, 2014, to cover telephone allowance payments, and saved about $60,000 over the subsequent year. A similar partnership with MarketPlace has covered food allocations.
Cuts in arrears payments saved financial assistance $600,000, Ms Gordon-Pamplin said. There were no figures for cuts in the clothing and funeral allowances, rental allowances and school clothing allowances, as well as capping overseas medical care coverage.
The legislation, which was approved by MPs in the early hours of yesterday, enables the minister to impose limits on financial assistance for able-bodied recipients under the age of 65. Ms Gordon-Pamplin emphasised that any regulations imposed would be contingent on the infusion of new life into the Island’s economy.